Part A Question 2 (15 marks) Prof. Jones is a full-time University lecturer. Before he started working for the University, Professor Jones owned a business. The business has been shut down 5 years ago, but Prof. Jones still has some outstanding debts for a loan that he had acquired to finance some business assets. He incurs an annual interest expense of $1.320 from this outstanding debt. At the beginning of the year, Prof Jones purchased a new suit for $520 to wear while delivering lectures and attending academic conferences Due the pandemic, the University asked all their academic staff to work from home for the entire income year. Prof. Jones lives in a 3-bedroom house in the southern suburbs of Adelaide. He starts using one of the bedrooms as his home office space. The area represents approximately 1/5th of the house area. Prof. Jones works from home 5 days per week to achieve 38-hour work week. He uses the office space for his employment only and no personal effects are stored in the room except for an exercise bike that remains in one comer. He does not install any signage to suggest from the street front that the office is present. Prof. Jones acquired standard office furniture to furnish the home office space, including a desk, chair, lamp, filing cabinet, printer and other general office supplies. H spends a total of $2,500 on the office furniture and supplies. He also purchases a back support for his chair, for $80, to protect himself from straining his back from sitting at the computer for long hours. Prof. Jones also purchases a new desktop computer for $2,000 that he uses 70% for work and 30% for personal use. Additionally, he purchases an iPad to use solely for work for $599. He also obtains a Wi-fi connection at home for his online teaching. The monthly charge for the Wi-fi is $75, and he uses it 50% for work. Explain, with reasons, whether Prof. Jones is entitled to a General Deduction or a Specific deduction for any of these expenses? Part B Question 1 (10 marks) David is a full-time student. He works as a bartender at a local bar on weekend nights. He earns $28,000 in annual salaries from the bar. He also receives tips from customers occasionally. He has earned $7,000 in tips during the year. After a recent performance review, David's boss was very pleased with his performance and gave him a bonus of $1,000. During one of his shifts at the bar, David slipped and injured his back. His employer paid weekly compensation for loss of wages for a period until he was well enough to return to work. The compensations meant that his annual income from the bar remained unchanged (.e. totalling $28,000). During his rehabilitation time after the injury, David decides to buy a lottery ticket, and wins $7,000 from the lottery. Explain, with reasons, whether any of the payments received are assessable. 201 A- B ENG 83